Highlights European small-cap equities have structurally outperformed large-cap stocks. This outperformance echoes the desirable sectoral biases of small-cap stocks. It also reflects the inability of European large-cap stocks to…
Highlights Recommended Allocation The global economy will continue to grow at an above-trend rate over the next 12 months and central banks will remove accommodation only slowly.But the second year of a bull market is often…
Highlights The fourth quarter will be volatile as China still poses a risk of overtightening policy and undermining the global recovery. US political risks are also elevated. A debt default is likely to be averted in the end. Fiscal…
HighlightsThe power shortage in China due to depleted coal inventories and low hydro availability will push copper and aluminum inventories lower, as refineries there – which account for roughly one-half of global capacity – are shut to…
Results from Sweden’s September Economic Tendency survey were a minor disappointment. The headline indicator slipped 0.7 points to 119.9. The confidence indicators for both the manufacturing industry and consumer declined…
Highlights Monetary Policy: Last week’s numerous central bank meetings across the world confirmed that the overall direction for global monetary policy is shifting in a more hawkish direction. The main reason: growing fears that…
US and Euro Area measures of consumer confidence are diverging. According to the Conference Board survey, US consumer sentiment declined for the third consecutive month to a seven-month low of 109.3 in September. The nearly six-…
US Financials is among the best performing US equity sectors over the past three months. We expect these positive relative gains to continue. Financials will benefit from rising US bond yields over the coming year. Not only…
According to BCA Research’s European Investment Strategy service, the tactical environment is dangerous for European cyclicals in general, and materials in particular. The fallout from Evergrande’s problem will extend to the…